Explain valuation of perpetual bond

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Explain Valuation of perpetual Bond vs. Valuation of preferred stock.

A bond that pays interest forever and has no maturity is a perpetual bond. In what respect is a perpetual bond similar to a non-growth common stock? Are there preferred stocks that are evaluated similarly to perpetual bonds and other preferred stocks that are more like bonds with finite lives? Explain.

Reference no: EM1314424

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